Nashville has rapidly emerged as one of the most exciting startup ecosystems in the United States. Known for its rich history in music and healthcare, the city has expanded its influence into technology, logistics, and other innovative industries. With a growing number of venture capital firms, accelerators, and resources tailored to entrepreneurs, Nashville is becoming a prime destination for founders looking to launch and scale their businesses.
For startup founders actively fundraising, understanding the local investment landscape is critical. Nashville’s venture capital scene is unique, with a strong focus on healthcare, fintech, and disruptive technologies. This article serves as a comprehensive guide to the top venture capital firms in Nashville, offering insights into their investment focus and how they can help fuel your startup’s growth. We’ll also explore actionable advice on fundraising in Nashville, key trends shaping the ecosystem, and essential resources available to founders.
Let’s dive into the top VCs in Nashville and how you can leverage the city’s resources to take your startup to the next level.
Top Venture Capital Firms in Nashville
Altitude Ventures
About: Altitude Ventures aims to maximize value creation through value-added partnerships. AV provides early-stage venture capital financing to healthcare services and technology startups that improve healthcare.
Nashville Capital Network
About: NCN’s investor partners are founders and executives of successful healthcare and technology companies throughout the Southeast. NCN leverages these individuals to identify, evaluate, and accelerate the success of high-growth early-stage companies.
Fintop Capital
About: FINTOP Capital is a venture capital firm focused on early-stage FinTech companies. With over $700 million in committed capital across five funds, FINTOP brings decades of FinTech founding and operating experience to the board room, partnering with innovative entrepreneurs to push the frontiers of the financial services sector.
Thesis: We seek B2B service-enabled SaaS and software companies in the FinTech space. Our targets have a proven product in the market, real revenues, and are helmed by veterans of the industries they're looking to shape.
Relevance Ventures
About: Relevance Ventures is an early-stage venture firm, based in Nashville, Tennessee, that focuses on comprehensive social, environmental, and individual wellness. Since 2011, Relevance has grown into a leading investment firm targeting major disruptors across the nation with more than $125M in total AUM.
Thesis: Relevance is fixated on deploying capital into startups that create positive change for the everyday consumer, empower individuals and communities to reach their full potential, and help reduce the burden on our nation’s healthcare system. The firm’s investment mandate and location enables them to anchor deals across the country contributing anywhere from $250K to $2.5M in financing rounds depending upon stage, size, growth trajectory, and the long-term potential of the business.
Mountain Group Partners
About: Founded in 2002, Mountain Group Partners is a Nashville-based venture capital firm that invests in early stage companies in the Life Sciences and Disruptive Technology sectors. The firm brings over 100 years of combined operational experience and have investments in more than 60 companies. Mountain Group takes a unique, hands-on approach to investing based upon this deep operational experience, a desire to help bring transformational technologies to market and a fund structure which better aligns GP and LP interests.
Health Velocity Capital
About: Health Velocity Capital is a health care focused venture and growth capital partnership
Powered Health
About: Powered Health is changing the business of healthcare by driving better outcomes in patient safety and patient satisfaction while improving and developing revenue sources for hospitals. Powered Health is made up of companies that provide software solutions across the full continuum of care.
GoEx Venture Capital
About: GoEx is a $5MM pre-seed fund in Nashville, TN, focusing on real estate technology companies across the U.S.
Petra Capital Partners
About: Petra Capital Partners, based in Nashville, TN, has been a pioneer of the growth capital model, having invested more than $700 million in more than 100 high-growth private companies since we started in 1996. We are currently investing out of our fourth SBIC fund, closed in 2020, with $210 million of available capital. We invest up to $20 million of our own capital per company in non-control subordinated debt and/or preferred stock to high growth companies for expansion, acquisition, buyout or recapitalization, and can source additional capital through our network of co-investors and senior lending partners. Companies must have at least $10 million in revenue and positive ebitda at the time of investment. We focus on business services, tech-enabled services and healthcare services companies.
NueCura Partners
About: NueCura Partners, LLC is an angel investment company created by seasoned healthcare industry operators that focuses primarily on investments in the healthcare sector and allows participating affiliate members to make their own investment choices. "Investing in New Age Healthcare"
Mountain Group Partners
About: Founded in 2002, Mountain Group Partners is a Nashville-based venture capital firm that invests in early stage companies in the Life Sciences and Disruptive Technology sectors. The firm brings over 100 years of combined operational experience and have investments in more than 60 companies. Mountain Group takes a unique, hands-on approach to investing based upon this deep operational experience, a desire to help bring transformational technologies to market and a fund structure which better aligns GP and LP interests.
How to Successfully Raise Capital in Nashville
Nashville has emerged as a vibrant hub for startups, particularly in industries like healthcare, music technology, and logistics. For founders looking to raise capital in this growing ecosystem, understanding the unique dynamics of the local investment landscape is crucial. Below, we explore the types of startups that attract local investors, the importance of relationship-building, and actionable tips to stand out in a competitive market.
The Types of Startups That Attract Local Investors
Nashville's venture capital scene is heavily influenced by the city's economic strengths. Startups in the following sectors tend to attract the most attention from local investors:
- Healthcare and Health Tech: Nashville is home to some of the largest healthcare companies in the U.S., such as HCA Healthcare. This has created a robust ecosystem for health tech startups, with investors actively seeking innovative solutions in telemedicine, patient care, and healthcare analytics. Nashville-based VC firms like Jumpstart Foundry and NueCura Partners focus heavily on healthcare startups.
- Music and Entertainment Technology: As the "Music City," Nashville is a natural fit for startups innovating in music tech, digital media, and entertainment platforms. Investors are drawn to companies that leverage technology to enhance the music and entertainment experience, such as streaming platforms or AI-driven music production tools.
- Logistics and Supply Chain: With its central location and strong transportation infrastructure, Nashville has become a hotspot for logistics and supply chain startups. Investors are particularly interested in companies that use technology to optimize delivery systems, warehousing, and inventory management.
The Importance of Building Relationships with VCs in the Region
In Nashville, relationships are everything. Unlike larger markets like Silicon Valley, where cold outreach may yield results, Nashville's investment community thrives on personal connections and trust. Founders should prioritize networking and relationship-building to increase their chances of securing funding. Here’s how:
- Engage with Local Startup Hubs: Organizations like the Nashville Entrepreneur Center and Launch Tennessee host regular events, workshops, and pitch nights. These are excellent opportunities to meet investors and other founders in an informal setting.
- Leverage Warm Introductions: Nashville investors often prefer to work with founders who come recommended by someone in their network. Use your connections to secure warm introductions to venture capitalists and angel investors.
- Maintain Ongoing Communication: Building a relationship with a VC doesn’t end after the first meeting. Keep potential investors updated on your startup’s progress through regular investor updates using Visible. This demonstrates your ability to execute and keeps you top of mind when they’re ready to invest.
Tips for Standing Out in a Competitive Market
With Nashville's startup ecosystem growing rapidly, competition for funding is fierce. Here are some strategies to help your startup stand out:
- Show Traction Early: Investors in Nashville, like elsewhere, want to see proof that your business model works. Whether it’s a growing user base, early revenue, or strategic partnerships, demonstrating traction can significantly boost your appeal. Centralize, visualize, and distribute your financial and key metric performance with Visible here.
- Highlight Founder-Market Fit: Nashville investors value founders who have a deep understanding of the industries they’re targeting. Showcase your expertise and why you’re uniquely positioned to solve the problem your startup addresses.
- Tailor Your Pitch to Local Investors: Research the specific focus areas of Nashville-based VCs and angel investors. For example, if you’re pitching to a healthcare-focused firm like Jumpstart Foundry, emphasize how your solution addresses critical challenges in the healthcare industry. Upload your deck, tailor it to your brand, share it securely, and understand engagement with Visible here.
- Leverage Nashville’s Unique Ecosystem: Highlight how your startup benefits from being based in Nashville. Whether it’s access to healthcare networks, music industry connections, or logistics infrastructure, showing how the city supports your growth can resonate with local investors.
Resources for Startups in Nashville
Nashville’s thriving entrepreneurial ecosystem offers a wealth of resources to help founders launch, grow, and scale their startups. From co-working spaces to accelerators, government programs, and university partnerships, the city provides a supportive environment for innovation. Below, we explore these resources and offer actionable advice on how to leverage them effectively.
Co-Working Spaces
Use co-working spaces not just for office needs but as a platform to connect with other entrepreneurs, attend events, and find potential collaborators or mentors. Many spaces also host workshops and networking sessions that can help you build your startup community.
- WeWork Nashville: With locations in Downtown and East Nashville, WeWork offers flexible office spaces, meeting rooms, and networking events tailored to startups.
- Industrious Nashville: Known for its premium amenities and professional environment, Industrious has locations in The Gulch and Cummins Station.
- Center 615: A locally owned co-working space that fosters a creative and collaborative atmosphere, ideal for early-stage startups.
Accelerators and Incubators
Research the focus areas of each accelerator or incubator to find the best fit for your startup. Tailor your application to highlight how your business aligns with their mission and leverage their mentorship programs to refine your business model and pitch.
- Jumpstart Foundry: Focused on healthcare startups, Jumpstart Foundry offers $150,000 in funding and access to a network of healthcare executives and investors.
- Launch Tennessee: A statewide initiative that supports startups through funding, mentorship, and networking opportunities. Their Impact Fund provides up to $250,000 in investments.
- Nashville Entrepreneur Center (NEC): NEC runs programs like Project Healthcare and Project Music & Entertainment, which cater to startups in healthcare and entertainment tech.
Government Grants and Programs
Stay informed about grant deadlines and eligibility requirements. Work with organizations like TSBDC to prepare strong applications and maximize your chances of securing funding.
- Launch Tennessee SBIR/STTR Matching Fund: Provides matching funds to startups that have received federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) grants.
- Tennessee Small Business Development Center (TSBDC): Offers free consulting, training, and assistance with business planning and funding applications.
- Nashville Economic Development Incentives: Programs like property tax abatements and grants for job creation are available for qualifying businesses.
University Partnerships
Partner with university programs to access research expertise, student talent, and mentorship. Participate in university-hosted pitch competitions and networking events to gain visibility and connect with potential investors.
- Vanderbilt University’s The Wond’ry: An innovation center that provides incubator space, mentorship, and access to state-of-the-art facilities for startups.
- Belmont University’s Center for Entrepreneurship: Offers educational programs, workshops, and incubator support for student and community entrepreneurs.
- Lipscomb University’s Entrepreneurship Program: Focuses on equipping students with the skills to launch and manage successful businesses.
Connect With Investors in Nashville Using Visible
At Visible, we often times compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors.
With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible.
- Find investors at the top of your funnel with our free investor database, Visible Connect and find a filtered list of Nashville's investors here.
- Track your conversations and move them through your funnel with our Fundraising CRM
- Share your pitch deck and monthly updates with potential investors
- Organize and share your most vital fundraising documents with data rooms
Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.
